[2020 National Audit] Hong Nam-ki "Jeonse Prices Unlikely to Fall Easily... Considering Additional Measures"

Deputy Prime Minister Hong: "Seoul Housing Market Shows 'Stable Trend' According to Statistics"

Hong Nam-ki, Deputy Prime Minister for Economic Affairs, attended the National Assembly's Planning and Finance Committee hearing on the Ministry of Economy and Finance on the 8th, responding to lawmakers' questions. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Jang Sehee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated on the 8th that the rising trend of jeonse prices in Seoul and the metropolitan area cannot stabilize immediately, and that additional measures will be sought regarding the real estate market.

At the National Assembly's Planning and Finance Committee's Ministry of Economy and Finance tax policy audit on the same day, in response to a question from Ki Dong-min, a member of the Democratic Party of Korea, asking "When do you expect the real estate market to normalize?" Hong replied, "The situation is currently not yet stabilized."

Hong said, "I thought the effect of the three lease laws would appear in about two months, but unfortunately, the jeonse market has not yet stabilized," adding, "We will continue to seek additional measures."

Regarding the instability of the jeonse market, Assemblyman Ki urged for countermeasures, saying, "In Seoul and the metropolitan area, the rise in jeonse prices is expanding, overlapping with the moving season and monthly rent issues, raising skepticism about whether the market can stabilize." In response, Hong said, "In the case of jeonse, a considerable amount of jeonse supply is expected to be extended through the contract renewal request under the three lease laws," and predicted, "Since there are few listings and jeonse prices are rising excessively to avoid the three lease laws, the jeonse prices are unlikely to decrease easily."

Regarding the overall housing market, he evaluated, "In the case of the Seoul housing market, according to our statistics, it is in a stable state. Areas with excessively risen apartment prices require some downward adjustment," but added, "So far, the apartment prices in Seoul have remained stable, and I believe stability will be maintained within this stable trend."

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